Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased compared to both the prior quarter and the same quarter last year. However, operating cash flow turned deeply negative, resulting in a significantly weakened free cash flow margin.
- Despite higher revenue, operating cash flow was negative and substantially lower than both the preceding quarter and the year-ago period, driving free cash flow deeply negative. The free cash flow margin weakened sharply as a result.
- Compared to the immediately preceding quarter, revenue was higher but operating cash flow and free cash flow were both lower, with the free cash flow margin weakening. Versus the same quarter one year earlier, revenue was higher while operating cash flow, free cash flow, and margin all weakened.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$2.0B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$1.6B
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$1.5B
Cash generated by operations before capital spending.
CapEx
$92.9M
Capital spending and related asset purchases.
FCF margin
-41.7%
The share of revenue converted into free cash flow.
Cash flow trend
A short quarterly history shows whether FCF is scaling with revenue or only spiking for one period.
| Period | Revenue | Operating CF | CapEx | FCF | FCF margin |
|---|---|---|---|---|---|
| 2023-06-30 | $2.2B | -$9.3M | $8.2M | -$17.5M | -0.8% |
| 2023-09-30 | $2.1B | $270.5M | $2.6M | $267.8M | 12.6% |
| 2023-12-31 | $3.7B | -$595.1M | $14.7M | -$609.8M | -16.6% |
| 2024-03-31 | $3.9B | -$1.5B | $92.9M | -$1.6B | -41.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -399.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.4% | Lower capital intensity usually supports FCF margin. |
| Net cash | n/a | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Operating Cash Flow Swing
Operating cash flow shifted from positive a year ago and negative but smaller in the prior quarter to a larger negative figure this quarter. The filing notes that recent liquidity drivers included an increase in working capital needs due to higher inventory levels required by growing revenues and longer supply chain lead times.
The large negative operating cash flow was the primary factor behind the weakened free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Despite higher revenue, operating cash flow was negative and substantially lower than both the preceding quarter and the year-ago period, driving free cash flow deeply negative. The free cash flow margin weakened sharply as a result.
Compared to the immediately preceding quarter, revenue was higher but operating cash flow and free cash flow were both lower, with the free cash flow margin weakening. Versus the same quarter one year earlier, revenue was higher while operating cash flow, free cash flow, and margin all weakened.
Monitor the trajectory of operating cash flow, as it turned negative despite higher revenue.